On Aug. 30, RUS CB set 0.25% countercyclical capital adequacy buffer.
RUS CB set a national countercyclical capital adequacy buffer at 0.25% of risk-weighted assets, designed to increase the stability of the banking sector.
Key Points
The pace of lending growth outpaces household incomes and nominal GDP growth, and banking sector's equity ratio decreases due to rapid lending and dividend payments.
The banking sector's equity adequacy ratio has decreased due to rapid growth in lending and dividend payments and the bank aims to increase the resilience of the banking sector to possible shocks and limit their impact on lending to the economy.
Also, establishment of a buffer is expected to have an insignificant impact on lending to the economy but will increase stability of banks in case of economic pressure.
RUS CB will consider the schedule for achieving the target level of the countercyclical buffer of 1% of risk-weighted assets in 2025, accounting for the credit cycle phase.
The long-term target value of the countercyclical buffer is 1% of risk-weighted assets.
Effectiveness
The national countercyclical capital adequacy buffer at 0.25% of risk-weighted assets is effective from Jul. 1, 2025.
